If one of the largest sovereign wealth funds is talking to Taleb’s investment company, Universa Investments LP, then perhaps even the largest of money managers are getting a bit nervous about the future…………………………………….Full Article: Source

From FT Alphaville: Further adventures in sovereign wealth fund knife-catching — of a sort. We’ve noted before that equity volatility has hampered sovereign wealth fund returns a tad lately. Tuesday’s WSJ offered a glimpse of a potential flip-side to this — SWFs buying protection on even worse reiterations of that volatility.

From Reuters: Korea Investment Corp (KIC), South Korea’s $35 billion sovereign wealth fund, plans in the next five years to double the proportion of its funds in private market investments such as distressed debt and real estate to 20 percent.

“Right now is the time to go into private markets,” Scott Kalb, KIC’s chief investment officer, said at a speech in Seoul Tuesday. “Risk premiums on illiquid investments are becoming attractive.”……………………………………Full Article: Source

From Zdnetasia.com: State-owned investment company, Temasek Holdings, opened its purse strings to fund Chinese online video company, Tudou, because it wanted to capitalize on China’s consumer market and its rising spending power, according to an industry analyst.

Jessica Lo, managing director and head of private equity and mergers and acquisitions practices at China Market Research Group (CMR), told ZDNet Asia that the 2010 investment sweetspot is the Chinese consumer. This explains why billion-dollar private equity funds such as Fountainvest Partners and Temasek are focusing on this demographic which has “a potential high upside”, she said…………………………………….Full Article: Source

From Thestar.com.my: Sarawak-based Samling Global Ltd has refuted its former investor Norwegian Pension Fund’s (NPF) claims that the group had repeatedly breached regulations of its timber activities in Sarawak and Guyana, contributing to illegal logging and severe environmental damage.

A company spokesperson said that Samling Global was dissappointed with NPF’s public characterisation of the group, which was inaccurate and not based on complete information…………………………………….Full Article: Source

From Reuters: Singapore sovereign wealth fund GIC has bought 1.2 million American Depositary Shares or a 5.5 percent stake in medical device-maker China Kanghui Holdings KH.N, according to a Securities and Exchange Commission filing.

The filing did not give the price of the purchase, but GIC’s stake is currently valued at $15 million based on the firm’s market value of $278.8 million…………………………………….Full Article: Source

From Pionline.com: China Investment Corp. — one of the fastest-growing funds in the world — is likely to outsource tens of billions of dollars within the next few years to money managers specializing in alternative and emerging markets strategies, according to sources familiar with the $332 billion sovereign wealth fund.

Indeed, what began in piecemeal around 18 months ago is likely to accelerate in the coming months if market conditions are favorable, sources said…………………………………….Full Article: Source

From WSJ: Universa Investments LP, is in talks with China’s $300 billion sovereign-wealth fund, China Investment Corp., and Middle East government funds about investing in Universa, according to a person familiar with the matter.
Specifically, sovereign-wealth funds are willing to pay the firm in the hopes that if the market dives, at least some part of their portfolio will profit…………………………………….Full Article: Source

From Efinancialcareers.sg: Singapore’s main sovereign wealth fund is close to giving the go-ahead for an initial public offering of a parcel of Asian industrial property assets that could be the biggest IPO in the city state for nearly two decades.
The Government of Singapore Investment Corporation is discussing valuations of between S$2.7bn and S$4bn (US$2bn and US$3bn) for its Global Logistics Properties unit, according to people with knowledge of the proposals…………………………………….Full Article: Source

From Dow Jones: Central Huijin Investment Ltd., the domestic investment arm of China’s sovereign-wealth fund, said Monday it set the indicative range for the coupons on its maiden bond sale of up to CNY54 billion ($7.95 billion), which it plans to use to finance its participation in the fund-raising plans of major Chinese banks.

Central Huijin said in a statement it plans to sell the seven-year tranche at a coupon of 2.85%-3.45% and the 20-year portion at 3.87%-4.47%…………………………………….Full Article: Source

From Pionline.com: Korea Investment Corp., the country’s $29.6 billion sovereign wealth fund, might look to hire strategic partners in the near future, although the structure of such a partnership has not been decided, Scott Kalb, chief investment officer, said in an e-mail response to questions.
“We are interested in the concept and (are) working on putting together a program that meets the requirements and objectives of the KIC and that can help us to perform at a higher level,” Mr. Kalb said. Mr. Kim said public megafunds such as National Pension Service have substantial internal resources, but use strategic partnerships to buttress their understanding of global investments and to take advantage of managers’ global research and experience…………………………………….Full Article: Source

From Bloomberg: National Pension Service, South Korea’s biggest investor, said it’s in talks to buy into a U.S. oil pipeline to diversify its portfolio.

The Korea Economic Daily earlier reported that the pension fund was picked as a preferred bidder to buy 23.44 percent of Colonial Pipeline Co. from Chevron Corp. for about 1 trillion won ($847 million)…………………………………….Full Article: Source

From Rdionz.co.nz: The New Zealand Superannuation Fund’s purchase of more than $3 billion of shares in July has been labelled risky by some investment managers. The fund, which will partly pay for national superannuation from 2030, sold large numbers of safer Government bonds to make the investment.

The managing director of fund manager Brook Asset Management, Mark Brighouse, says it is a big move given world share markets…………………………………….Full Article: Source

From Zawya.com: A report prepared by KFH Research Limited about the global Sukuk market, shows remarkable recovery from the effects of the global financial crisis. There seemed to be a recovery in the growth of the total value of Sukuk issuance in 2009 and during the first half of this year.

KFH Research expects Sukuk market to maintain its vitality during 2010, and foreseeable future under the push of positive factors monitored by the report. The most important factors are stimulus programs, huge government expenditures and government initiatives that will enforce and develop Sukuk as well as the increasing popularity of Sharia compliant products…………………………………….Full Article: Source

From IPE: The NOK2.8trn (€352bn) Government Pension Fund Global (GPFG) is planning to exclude two Israeli companies and one Malaysian company, worth a combined NOK15m, from its investment universe.

The Israeli companies were excluded for breaching the fourth Geneva Convention, which states that building settlements on occupied territories is forbidden, while the third company was found to be logging illegally…………………………………….Full Article: Source

From Haaretz.com: Norway’s 450 billion euro oil-riches fund has excluded two Israeli firms involved in developing settlements, as well as a Malaysian forestry firm, on ethical grounds, Norway’s finance ministry said.
The excluded companies are Africa Israel Investments and its engineering subsidiary Danya Cebus, both of which are controlled by energy and real estate magnate Lev Leviev. The Malaysian firm is Samling Global…………………………………….Full Article: Source

From Ynetnews.com: Norway’s Finance Ministry says the country’s oil fund has divested from two Israeli companies involved in building settlements in the West Bank.

The ministry said Monday that the 2.8 trillion kroner ($440 billion) sovereign wealth fund has excluded from its portfolio construction company Danya Cebus Ltd. and its majority owner, Africa Israel Investments Ltd. Danya Cebus has built Israeli homes in the West Bank…………………………………….Full Article: Source

From Thestar.com.my: Norway’s state pension fund, one of the world’s largest sovereign wealth funds, has excluded two Israeli companies for “unethical activity” linked to settlement building in the Palestinian territories and one Malaysian forestry firm on ethical grounds, the Norwegian government said.

According to the Finance Ministry, the so-called oil fund, which contains nearly all state revenues from the country’s booming oil and gas industry, has sold its holdings in Africa Israel Investments, which is the largest shareholder of Danya Cebus, which the fund says is involved “in developing settlements in occupied Palestinian territory.”……………………………………Full Article: Source

From Indiatimes.com: Kuwait Investment Authority (KIA), the country’s sovereign wealth fund agreed to more than double its investment in Agricultural Bank of China’s initial public offering to $1.9 billion, a local newspaper said. Qatar Investment Authority (QIA) also raised its stake to $6 billion from $2.8 billion, signaling Middle East funds took a big slice of the record IPO.

From Dow Jones: Peru’s net international reserves rose to a record high $40.63 billion as of August 17, boosted in part by heavy U.S. dollar buying by the Central Reserve Bank of Peru.

The central bank has been intervening regularly since July 18 to purchase dollars, as strong foreign capital inflows increase appreciation pressures on the local currency, the sol…………………………………….Full Article: Source

From 234next.com: The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) says the Sovereign Wealth Fund being proposed by the Federal Government is illegal, as its foundations are not rooted in the provisions of the country’s constitution.

The Fund is for the accumulation of excess revenue from trade and crude oil exports for investments and development of critical infrastructure that would benefit both the country’s economy and the citizenry in general…………………………………….Full Article: Source

From Americanchronicle.com: The Malaysian government’s call on the member countries of the Islamic Development Bank (IDB) to consider establishing “the world’s first supra-sovereign wealth fund” to invest in Muslim economies on the same returns expectations as for the SWF industry in general, merits serious discussion. The precedent involving the efficacy of intra-Arab funds however does not augur well for a Muslim supra-SWF.

The idea of a supra-sovereign wealth fund was suggested by Malaysian Finance Minister, Ahmad Husni Hanadzlah, at the 35th Annual Board of Governors Meeting of the IDB which was held a few weeks ago in Baku, Azerbaijan…………………………………….Full Article: Source

From Asahi.com: One reason is that the Chinese government established a sovereign wealth fund named the China Investment Corp. (CIC) with capital of $200 billion in September 2007 to more aggressively invest in overseas markets.

That is about the time the two Chinese investment funds began expanding their portfolios…………………………………….Full Article: Source

From Koreaherald.com: Chinese investors more than doubled their holdings of Korean bonds so far this year as part of efforts to diversify investment from the U.S. and Europe in the wake of the financial crisis. The China Investment Corp. is thought to be planning to diversify its portfolio, and has been receiving consultations from Korean securities firms.

Flush with cash, Chinese investors are putting money in the debt, stocks and real estate of Korea, which has been emerging from the global recession most robustly among rich countries…………………………………….Full Article: Source

From Ibtimes.com: Kenny Huang and the consortium of sovereign wealth including CIC - have reportedly dropped their bid in to become Liverpool football club’s new owners.

However, in true Chinese fashion, despite having reportedly dropped interest, it appears Huang and the QSL consortium remain interested after only wanting to ’speed things up’ as sources reveal his is the only ‘credible’ bid for the football club…………………………………….Full Article: Source

From Emirates247.com: RAK Airways - a private joint stock company incorporated in the RAK Investment Authority Free Zone with an authorized capital of Dh1.5 billion - has already invested more than $27.23m in infrastructure development, according to Oxford Business Group.

To complement the airway’s revival, substantial construction work is also running ahead for the RAK International Airport, which is angling to corner more of the passenger and cargo business within the UAE…………………………………….Full Article: Source

From Indiatimes.com: India has abandoned the plan to create a sovereign wealth fund on the line of Singapore, United Arab Emirates, Saudi Arabia, China and Russia, the finance ministry said on Friday. “The government had examined a proposal to create a sovereign fund of $5 bn for financing acquisitions of companies abroad. However, it was decided not to pursue this proposal,” Minister of State for Finance Namo Narain Meena said.
Currently, there are more than 50 sovereign wealth funds, managing assets worth nearly $3 trillion. Most of these funds are run by the countries that have huge trade surplus. It is mostly funded by commodity revenues, predominantly from oil and gas exports…………………………………….Full Article: Source

The global financial crisis that erupted in August 2007 has shed new light on the role of official investors and the assets they manage. In many countries, governments and government-owned entities were called upon to address crises that emerged due to the mismanagement of risk in the private sector. Yet official investors and public institutions need to manage risks of their own – risks that in many cases are unique to them.

Sovereign Risk Management focuses on how official investors should respond to the new challenges they face in managing diverse forms of risk in the aftermath of the crisis. The book includes the insights of a carefully selected roster of experts and practitioners on the management of market, political and regulatory risk…………………………………….Full Press Release: Source

From Nytimes.com: China’s $300 billion sovereign wealth fund may pick the China Asset Management Company, the country’s largest fund manager, to oversee part of its international investments, a person with direct knowledge of the matter said.
The China Investment Corporation, which is responsible for managing part of the nation’s foreign-exchange reserves, would invest through China Asset’s Hong Kong unit, the person said, requesting anonymity as no announcement has been made……………………………………….Full Article: Source

From Bloomberg: Central Huijin Investment Co., the state company that controls China’s biggest banks, plans to sell 187.5 billion yuan ($28 billion) of bonds to bolster its stakes in the lenders.
The domestic arm of the nation’s sovereign wealth fund, China Investment Corp., will sell 40 billion yuan in the first portion Aug. 24 on the interbank market, it said in a statement today on the website of Chinabond, the official clearinghouse……………………………………….Full Article: Source

From Bloomberg: Temasek Holdings Pte said Gregory Curl, once a candidate for chief executive officer of Bank of America Corp., will join the Singapore state-owned investment company as president.
Simon Israel, Temasek’s executive director, will also assume the role of president, the company said in an e-mailed statement today……………………………………….Full Article: Source

From Straitstimes.com: Temasek Holdings has appointed Bank of America veteran Gregory Curl as a new president in the latest move to provide support for its senior leaders.
Mr Curl, 62, will oversee its investments in financial services and support its strategic engagement in the Americas. His appointment follows that of former Singapore Exchange chief executive Hsieh Fu Hua as executive director and president on Aug 1……………………………………….Full Article: Source

From Businessghana.com: While Pacifica, a joint venture between the Government of Singapore Investment Corporation and Host Hotels and Resorts, has 36 per cent stake in the fund, Accor and Interglobe holds the remaining stake.
“We are in great expansion mode in India. We are going to invest on building hotels in the midscale and economy segment,” Accor Chief Executive Officer Gilles Pelisson said……………………………………….Full Article: Source

From FT Alphaville: We already know there’s a two-tiered market out there in Europe, so may as well put it to work chasing yield. Norway’s sovereign wealth fund is already loading up on peripheral government debt, after all.
And there’s plenty of positions here — government-backed banks, say. But the position overall ain’t going to last, thanks to its key underpinning by the EFSF, which we presume isn’t going to last forever……………………………………….Full Article: Source

From Marketwatch.com: Sovereign wealth funds, Chinese banks and other national financial institutions could fund a global consortium to make a counter-offer to keep Potash out of BHP’s hands, The Wall Street Journal reported, citing people familiar with the matter.
“We are not opposed to a sale, we are opposed to a steal of the company,” said Potash Chief Executive Bill Doyle, according to the Journal report……………………………………….Full Article: Source

From Ctv.ca: Sovereign wealth fund China Investment Corp., which has taken minority stakes in other Canadian resource assets and companies, could also get involved. CIC could take a minority stake in Potash while helping bankroll a bid from another mining firm.
For a guaranteed supply, China could also make a direct minority investment in Potash to help it fend off BHP……………………………………….Full Article: Source

From Bloomberg: China’s $300 billion sovereign wealth fund may pick China Asset Management Co., the country’s largest fund manager, to oversee part of its international investments, said a person with direct knowledge of the matter.
China Investment Corp., which is responsible for managing part of the nation’s foreign-exchange reserves, would invest through China Asset’s Hong Kong unit, the person said, requesting anonymity as no announcement has been made……………………………………….Full Article: Source

From Thenational.ae: Local markets are to receive a boost from Chinese investors. “There are limits on the Chinese investors that can invest abroad – the pension funds, the China Investment Corporation and the banks, which can create mutual funds that invest in certain markets, although I very much doubt they would be targeted at the Middle East,” said Ben Simpfendorfer, the chief Asia economist for Royal Bank of Scotland.
Growing economic links between China and the Middle East are likely to result in a number of significant investments, according to analysts……………………………………….Full Article: Source

From Peopledaily.com.cn: Central Huijin Investment Ltd., an arm of China’s sovereign wealth fund, said Thursday it will soon issue 187.5 billion yuan (27.6 billion U.S. dollars) of Renminbi-denominated bonds in its first ever bond sale.
The capital raised will allow Huijin, which already controls China’s largest banks, to further invest in the nation’s five leading banks this year, the company said in a statement……………………………………….Full Article: Source

From Dow Jones: Retail outlets at Las Vegas Sands Corp.’s (LVS) Marina Bay Sands casino resort in Singapore could generate annual sales of more than S$1 billion, said David Sylvester, senior vice president of Sands’ Asia retailing operations, who was once group general manager of the retail assets in Australia and China of GIC Real Estate, the real-estate arm of sovereign-wealth fund Government of Singapore Investment Corp.
Sylvester said Wednesday about 50 more shops will open at Marina Bay Sands in September, including Dior and Hermes outlets, bringing the total number of stores to over 150. When fully operational, Marina Bay Sands will have more than 300 stores and restaurants……………………………………….Full Article: Source

From Todayonline.com: Singapore’s initial public offering (IPO) market looks set to sizzle this year as two big share offerings this year. Chinese shipbuilder New Century Shipbuilding is rousing the market with talk that it would revive its IPO plans here, while GIC Real Estate - the property arm of the Government of Singapore Investment Corp - is expected to launch a massive US$3 billion ($4.05 billion) IPO.
Analysts are upbeat that there is sufficient liquidity in the market to absorb the massive share offerings from both firms and that they can also help boost the languishing market sentiment on IPOs……………………………………….Full Article: Source

From WSJ: Highland Hospitality could file for bankruptcy as economic woes squeeze the hotel industry. Highland Hospitality is in talks with Abu Dhabi Investment Authority and other possible investors about an infusion worth at least $200 million to possibly buy the company.
Financial woes at the 27-hotel chain, with holdings scattered from the Ritz-Carlton in downtown Atlanta to the Hilton Boston Back Bay, already have sparked maneuvering for control of Highland between JER Partners, Mr. Robert’s private-equity firm, and some of the creditors that include Wells Fargo & Co., Barclays PLC, Prudential Financial Inc. and Ashford Hospitality Trust……………………………………….Full Article: Source

From Tribune.com.ng: The nation’s foreign exchange reserves rose around three per cent to $38.2 billion by mid-August from $37.1 billion at the end of last month. Finance Minister, Olusegun Aganga had said that he wanted a sovereign wealth fund to replace the excess crude account, which has no clear constitutional basis.
Forex reserves stood at $43.3 billion a year earlier, but have fallen sharply since then due to demand pressure from importers and a reduction in accruals from oil export revenues……………………………………….Full Article: Source

From WSJ: The Government of Singapore Investment Corp.’s real-estate arm, GIC Real Estate, is looking to begin global roadshows in late September for the initial public offering of its overseas assets for around US$3 billion, people familiar with the situation said.
GIC Real Estate manages a multibillion-dollar portfolio of direct and indirect property investments with close to 300 investments in more than 30 countries……………………………………….Full Article: Source

From Bernama: Government investment arm, Khazanah Nasional Bhd, has emerged as the controlling stakeholder of Singapore’s healthcare group, Parkway Holdings Ltd, after securing 95 per cent take-up rate in its voluntary general offer (VGO) for the latter.
In a statement here Tuesday, Khazanah said this would further enhance its presence in the healthcare industry in the region……………………………………….Full Article: Source

From Dow Jones: South Korea’s National Pension Service said Tuesday it is negotiating to buy a stake in a French shopping mall called the O’Parinor.
An official at the fund, who declined to be named, said the size of the stake in the mall and the price haven’t yet been finalized. He didn’t elaborate……………………………………….Full Article: Source

From Investingdaily.com: Reuters reported this week that sovereign wealth funds (SWF) could top the wish-list of General Motors’ management as the reconstituted US automaker contemplates the mechanics of an initial public offering (IPO) of new shares.
The new GM is considering making “cornerstone” stakes available to very large institutions capable of holding for the long term and providing ballast against what are likely to be volatile stock market and operating conditions……………………………………….Full Article: Source

From Reuters: Goldman Sachs and Groupe Eurotunnel have expanded their bidding group for Britain’s only high-speed rail line as first-round bids were due for the 1.5 billion pound route. One is made up of Morgan Stanley Infrastructure, 3i Infrastructure Plc and Abu Dhabi Investment Authority (ADIA).
The British government is selling “High Speed 1,” which has a 30-year concession to run a 110 kilometre (70 mile) railway linking London and the Channel Tunnel, to help cut its budget deficit……………………………………….Full Article: Source